The Australian Dollar dropped to a three-week low against its US namesake having reversed downward as expected after a break of channel support set from January. Sellers now aim to challenge 0.9201, the 23.6% Fibonacci expansion, with a daily close below that exposing the 38.2% level at 0.9041. Alternatively, a move back above the 0.93 figure clears the way for a retest of the channel floor (now at 0.9368) as resistance.

We sold AUDUSD at 0.9328 in line with our fundamental outlook, initially targeting 0.9201. A stop-loss is set to trigger on a daily close above 0.9408. We will book profit on half of the position at 0.9201 and trail the stop-loss to breakeven.